Match List-I with List-IIList-IList-II(A) For the amount of calls received in advance(I) Calls in Advance A/c Dr.To Particular Call A/c(B) Interest on Calls in Advance is due(II) Sundry Shareholder's A/c Dr.To Bank A/c(C) The amount of 'Calls in Advance' is adjusted(III) Bank A/c Dr.To Calls in Advance A/c(D) Interest on Calls in Advance, For Interest Paid(IV) Interest on Calls in Advance A/c Dr.To Sundry Shareholder's A/cChoose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's trace the correct journal entries for Calls in Advance transactions:(A) For the amount of calls received in advance: Money comes into the bank before the call.
(B) Interest on Calls in Advance is due: This is an expense for the company.
(C) The amount of 'Calls in Advance' is adjusted: When the actual call is made, the advanced amount is matched.
(D) Interest on Calls in Advance, For Interest Paid: Actual cash payment to the shareholders.
Hence, the matching sequence is (A) - (III), (B) - (IV), (C) - (I), (D) - (II).
(B) Interest on Calls in Advance is due: This is an expense for the company.
(C) The amount of 'Calls in Advance' is adjusted: When the actual call is made, the advanced amount is matched.
(D) Interest on Calls in Advance, For Interest Paid: Actual cash payment to the shareholders.
Hence, the matching sequence is (A) - (III), (B) - (IV), (C) - (I), (D) - (II).